Could changes in LIBOR-setting lead to frustration in current contracts?

Table of contents

• What are the current plans to overhaul LIBOR or create alternative reference rates?
• What advantages would this have for the market and market-participants generally?
• What effect would this have on existing contracts referencing LIBOR? Would parties be able to argue that a contract could be terminated based on contractual frustration?
• Should banking lawyers be looking to add additional language into their contracts now to avoid future problems?

Article summary

Banking & Finance analysis: There is a move to transaction-based benchmarks for calculating LIBOR rates. Saaman Pourghadiri, barrister at Outer Temple Chambers, questions whether this change in methodology is likely to lead to frustration in current contracts.